Top Glove Corporation Bhd announced its results for the Second Quarter (2QFY16) and First Half
(1HFY16) ended 29 February 2016, defying an intensively competitive environment to deliver a strong performance.
The Group delivered Profit After Tax (PAT) for 1HFY16 of RM234.2 million, which already represents 83% of the full year profit for FY15 and growth of 122.4% versus 1HFY15. PAT for2QFY16 also rose by 86.9% to RM105.2 million compared with the corresponding period in FY15.
Sales Revenue for 1HFY16 increased by 31.1% to RM1.5 billion compared with 1HFY15 and in
2QFY16, the Group registered Sales Revenue of RM693.9 million, a 21.3% increase versus 2QFY15.
Far surpassing the 8% to 10% growth rate for global glove demand projected by the glove manufacturers association, 1HFY16 Sales Volume (quantity) surged 15.5% compared with 1HFY15. Similarly, 2QFY16 Sales Volume was also on the uptrend, growing 15.8% compared with 2QFY15.
The Group’s 2QFY16 results compared less favourably with its preceding record-breaking quarter in 1QFY16, with Revenue and PAT recording a decline of 13.3% and 18.4% respectively. This was attributed to the weakening USD, intense competition in the nitrile glove segment, as well as the increase in natural gas price, which impacted performance.
Top Glove will continue to expand its operations and build new optimised facilities with faster, more efficient and technologically-advanced production lines towards better profitability. Underway are expansion plans for Factory 27 in Lukut, Port Dickson (to commence production by March 2016) and Factory 6 in Thailand (to commence production by August 2016), as well as the construction of a new facility, Factory 30 (to commence production by February 2017). Together, this will bring the total number of production lines to 540 and total production capacity to 52 billion gloves per annum. Top Glove is also aggressively pursuing M&A opportunities that synergise with its current business, in similar or related industries.
On 14 March 2016, Top Glove also proposed a secondary listing on the Main Board of the Singapore
Exchange Securities Trading Limited (SGX-ST) by way of introduction, subject to approval by the relevant authorities and its shareholders. Pursuant to this exercise, a shareholder holding existing Top
Glove Shares listed and quoted on the Main Market of Bursa Securities may transfer such Top Glove
Shares to the Main Board of the SGX-ST and vice versa for trading on the respective stock exchanges, subject to the fulfilment of transfer conditions and criteria. The proposed secondary listing is expected to enhance the Company’s investor reach and diversify its investor base, enabling the Company to tap on a new platform for potential future fundraising. It also serves to enhance the visibility of the Company’s profile among international investors, analysts and media.